The document discusses several case studies of ERP implementation successes and failures: 1. Poly-Cast Plastics achieved their goals of setting up separate financial reporting for their China location using EnterpriseIQ, gaining better business intelligence. 2. Universities like UMass faced chaos when new registration systems crashed, disrupting classes, due to treating ERP systems like corporate tools without proper resources. 3. Hershey's rushed SAP implementation failed to meet deadlines, cutting testing and training, causing $100M in lost candy sales. 4. Nike's supply chain collapsed after a faulty new system from i2 Technologies resulted in ordering wrong inventory. 5. Miniature Precision Components

1. Successes and Failures of ERP
Systems
By: Annie Collier, Lauren Jepson, Lynzee Harrell, and Kristen
Warren

2. Poly-CastPlastics (Suzhou) Co., Ltd.
The overall goal was to drive accurate and timely financial reports internally out of EnterpriseIQ for better
awareness and management of the Suzhou, China plant. This was approached in five steps:
1. Separate out the Poly-Cast data into two locations: The headquarters in Oregon and locally at the
China location by setting up a separate enterprise plant (EPlant) in EnterpriseIQ.
2. Drive 100 percent of Poly-Cast Suzhou's financials from EnterpriseIQ within three months.
3. Create system-driven reports that management can use to track progress and identify risks.
4. Eliminate the outsourced financial support of the China CPA within six months.
5. Stay 100 percent compliant to rigorous PRC GAP and tax laws with the new internal financial
reports.

3. Poly-CastPlastics (Suzhou) Co., Ltd.
Poly-Cast has achieved:
Awareness: Poly-Cast was able to set up a real-time view of its business, with daily financial results,
rather than waiting until the month end or later to see how the company fared.
Proactive Approach: Poly-Cast now takes advantage of more system-driven data to project month end
results and manages risks to make sure that financial goals are met.
Better Business Intelligence: Poly-Cast now knows critical decision making details about its business,
including product break-even points, where costs are on the production floor and how to better manage
to get the desired results.

4. University of Massachusetts
When the University of Massachusetts-Amherst’s new online registration system, Spire, crashed the day before classes
commenced, all 24,000 students found themselves unable to register for classes, access timetables or perform any online
activities at all. Pandemonium broke out amongst disoriented first-years and classes were disrupted for the first three days
of term.
But the chaos didn’t stop there. At Stanford University students started the new school year with a dead web portal and no
clue where their classes were meant to be, and at Indiana University, 3,000 students were denied financial aid by the faulty
new ERP system, rushing financial aid administrators off their feet to scramble together food and short-term loans.
You may be wondering the cause of such widespread disaster. Could it have been a sorority Ouija session or a practical joke
gone-wrong? The truth lies in the rushed installation of software that included a PeopleSoft Web portal implementation.

5. University of Massachusetts
University administrators may be drawn to the organizational features of ERP systems but often fail to remember that they
have been designed to centralize corporate business processes. According to CIO.com, recent studies have shown that not
only do ERP implementations take far longer to install at Universities, but they usually cost up to five times more than the
original quote which is rather a problem when you’re running a college and not a profit spinning corporation.
The moral of the story: if you don’t have the talent, experience or financial capability to manage a sturdy enterprise
system, it’s better to leave it alone, in particular if you are a non-profit organization.

6. Failure● Set out to upgrade it’s IT System in 1996
● Chose SAP $112 R/3 software
● instead on suggested 48 month implementation period, Hershey demanded to be
implemented in 30 months (before Y2k)
● Went live July 1999

7. ● to meet demands, Hershey had to cut corners on the critical system testing
phases.
● Failure was rooted in shortcuts in systems testing, data migration, and training
● Incapable of processing $100 million worth of candy, even though it had it in
stock

8. Testing phases
● “Should never be compromised”
● 3 rounds of testing
○ 1st- Pilot Phase- Key users test the most frequently used business scenarios, one functional
department at a time.
○ 2nd - Departmental Pilot Phase - A team of users test the ERP system under realistic conditions
■ Full piloting
○ 3rd - Integrated Pilot Phase - “day-in-the-life” the users test the system to make sure all of the
various modules work together as intended

9. 90’s : Nike uses SAP ERP system
Year 2000 : Nike hires i2 Technologies
Year 2001: Stock fell almost 20% ; $100 million dollars in lost sales
-Nike blames i2 Technologies because instead of matching their supply
with demand, the new system ended up ordering low-selling shoes in place
of high selling ones
-Result: collapse in supply chain
Timeline of Events

10. Consequences of i2 Technologies
Inaccurate demand forecasting
Inventory problems
Overdue deliveries
Causes of System Failure
Software was too slow
Did not integrate well
Inadequate training

11. Outcome
Partners with Llamasoft for sustainable supply chain innovation
In 2002-2003, there was an 8% increase in revenue of $10.7 billion, due
to:
less inventory
leaner supply chain

12. Miniature Precision Components,
Inc. (MPC)
Jay and Shirley Brost
Founded in March of 1972
Leading tier-one supplier for major automotive
manufactures
Make a wide variety of thermoplastic components and
assemblies

13. Before ERP implementation
Did not have the visibility to examine its production process
with an eye for outliers and poor performance
Their lack of integration limited the company’s potential

14. Integration
MPC purchased EnterpriseIQ with Realtime Production Monitoring by
IQMS
After purchasing,
MPC has implemented the IQMS system across 5 physical plants and
8 production groups
MPC has seen significant returns on investment
reduced maintenance costs
better allocation of resources

15. References cont.
http://www.iqms.com/manufacturing-award/mpc/
http://www.iqms.com/company/mpc/index.html

16. References
IQMS.com. 1998-2015. How Poly-Cast Utilized the IQMS Financial Management Modules to Maintain Rigorous PRC Tax
Standards. Retrieved on 11/2/2015.
http://www.iqms.com/company/poly-cast/index.html
Sharedserviceslink.com Ltd. 2015. Freshers’ failures. Retrieved on 11/2/2015.
http://www.sharedserviceslink.com/blog/the-top-three-truly-shocking-erp-implementation-disasters
http://www.pemeco.com/a-case-study-on-hersheys-erp-implementation-failure-the-importance-of-testing-and-scheduling/
http://www.cio.com/article/2429865/enterprise-resource-planning/10-famous-erp-disasters--dustups-and-
disappointments.html
http://blog.360cloudsolutions.com/Top-Six-ERP-Implementation-Failures
http://www.cio.com/article/2439601/supply-chain-management/nike-rebounds--how--and-why--nike-recovered-from-its-
supply-chain-disaster.html?page=2